Strategic Planning in the Small Business

Unit 2

HO 2-6 (continued)

Figure 3-1 Refined Analysis Stage of Strategic

Planning

rI-- - - - - --

Environmental

Opportunities

Environmental

Analysis

Relevant

Internal

Business

Analysis Opportunities

Distinctive

Capabilities

and

Competenicies

Strategic

Planning

Formulation

First, environmental analysis yields a series of environ­

mental opportunities. These are then subjected to the scrutiny

of internal analysis to determine if, in fact, they are relevant

business opportunities. As a simultaneous process,

environ­

mental and internal analysis permit the firm to clearly recognize

its distinctive

competencies and capabilities (or pinpoint those

factors most fruitful for competency

development). Then, the

range of relevant business opportunities

are evaluated from

the perspective of the recognized distinctive capabilities and

competencies.

Those opportunities most consistent with the

firm's competencies and

capabilities are the ones that are ac­

tively pursued and become

the focus for subsequent planning

efforts.

95

Chapter Three Recognizing Distinctive Competencies

and Competitive Weaknesses

237